TIDMUFO
RNS Number : 0872O
Alien Metals Limited
29 September 2023
Trading Symbols
AIM: UFO
FWB: I3A1
29 September 2023
Alien Metals Ltd
("Alien" or "the Company")
Unaudited Consolidated Interim Results for the six months ended
30 June 2023
Alien Metals Ltd (AIM: UFO), a minerals exploration and
development company, is pleased to announce its financial results
for the six months ended 30 June 2023 (the "Period"). The full
Interim Results, with accompanying notes, are available on the
Company's website: www.alienmetals.uk .
Guy Robertson, Executive Director - Finance of Alien, commented:
" After being appointed Executive Director - Finance earlier this
year, I am pleased to share our Interim Results for the first six
months of 2023.
"Over the last half of the year, we have made significant
progress across our portfolio, with particular highlights including
the acquisition of Mallina Exploration Pty Ltd, providing us with a
strategic tenement holding at the Hancock Iron Ore Project and the
publication of the Maiden Ore Reserves at Hancock.
"The completion of the Maiden Ore Reserves at our Hancock Iron
Ore Project declared 1.9 million tonnes ("Mt") at 60.2% Iron ("Fe")
and an update to our JORC Resource to 9.1Mt at 60.3% Fe. This was a
significant milestone for the Company, as it built confidence for
the potential of Direct Ship Iron Ore ("DSO") at Hancock and
allowed us to commence the updated Study works.
"In addition, our agreement with Mallina Exploration Pty Ltd to
expedite the acquisition of the E 47/5001 tenement ("Mallina
Tenement"), which adjoins our Hancock Iron Ore Project, strengthens
our project portfolio. The tenement offers direct strategic access
to the Great Northern Highway, an advantage that further enhances
the viability of the Hancock Iron Ore project.
"We were also pleased to report that we have received fixed
price tender responses from the primary subcontractors for the
Hancock Iron Ore project development. Our immediate focus is to
secure all necessary approvals and permits to have our Mining Lease
and Mining Licence granted to allow production to commence in
2024.
"The successful completion of the resource definition drilling
programme at the Hancock Iron Ore Project brings us closer to our
goal of transitioning from explorer to developer and operator. We
anticipate a further upgrade to the Ore Reserves once our
geological experts update the mining model.
"At Elizabeth Hill, our latest exploration efforts have
identified potential for an extensive high-grade silver-rich
polymetallic orebody. The reinterpretation of the geological model
and the re-examination of historical data have expanded the known
mineralisation area, suggesting a more expansive mineralised system
at the surface. Analytical results from the drillholes have
identified the potential for Nickel ("Ni"), Copper ("Cu") and other
key future facing metals at Elizabeth Hill. Our recent drilling
activities have also confirmed extensions to the main silver ("Ag")
lode. This new geological understanding, coupled with promising
results from our exploratory drilling, suggests the original
high-grade narrow Ag vein may merely be the core of a larger
mineralised halo.
"Post period, we have been busy at Hancock where we unveiled our
latest set of assay results which have indicated significant
intersections of consistent grades exceeding 60% Fe, aligning with
the Company's current resource model. The results have further
strengthened our confidence in the Hancock Project's viability. We
have also identified the potential for DSO at the Mallina Tenement
next to the Hancock Project. This area has shown evidence of
high-grade rock chip samples with more than 60% Fe emphasising the
promising potential for further exploration of the tenement.
"The past half year has seen considerable advances in our
Australian projects. Our ongoing commitment to exploration and
development readiness contributes to our promising growth
potential. We look forward to sharing our progress over the
remainder of the year as we continue to focus on value creation for
our shareholders."
Appointments and Resignations
During the Period:
1. Guy Robertson was appointed as Executive Chairman on 26 April 2023.
2. Jo Battershill resigned as Non-Executive Director of Alien Metals on 26 April 2023.
3. Mr. Rod McIllree resigned as an Executive Director on 30 June 2023.
Post Period:
1. Alwyn Vorster joined the Company as Non-Executive Chairman in
August 2023. He brings with him a wealth of experience from the
iron ore sector.
2. Guy Robertson transitioned from his role as Executive
Chairman to Executive Director - Finance in August 2023.
3. Elizabeth Henson was appointed as Independent Non-Executive
Director in August 2023. Ms. Henson, an international lawyer, has
extensive experience in corporate governance and professional
services.
4. Troy Whittaker was appointed as Chief Executive Officer
(non-board) of Alien Metals in August 2023. Previously acting as
Interim CEO since December 2022, Mr. Whittaker brings over two
decades of experience from the mining industry.
5. Mark Culbert resigned as a Director on 4 August 2023.
6. Dan Smith resigned as a Director on 6 September 2023.
Financial Highlights
In the six months ended 30 June 2023, the Company made an
operating loss of US$1.6 million (30 June 2022: US$1.4 million) and
a basic and diluted loss per share of US$0.031 (30 June 2022:
US$0.031).
During the Period, Alien announced a short-term funding facility
of up to US$1 million, with the potential for an additional US$1
million through exercised warrants.
The Post Period saw the Company confirm the successful
completion of a fundraise, generating a total of GBP2 million by
placing 1,000,000,000 new Common Shares.
Following the successful fundraise, the undrawn amounts from
Tranche 1 and the full amount of Tranche 2 of the Convertible
Securities were cancelled.
Overview of Operations
Iron Ore Projects
Hancock Project
The Hancock Iron Ore Project is within 20 kilometres ("km") of
the established regional mining hub of Newman. The Hancock Project
borders licences held by Fortescue Metals Group, Hancock
Prospecting, BHP Billiton (Mount Whaleback), Hope Downs and Mineral
Resources.
During the period the Company received fixed price tender
responses from all suppliers that allows it to commence and
progress an updated study in readiness for FID. The Company
continues to progress all required approvals and permitting.
The Company announced a maiden compliant Ore Reserve for the
Hancock Project in April 2023, highlighting ore reserves of 1.9Mt
at 60.2% Fe and a mining inventory of 4.2Mt (inclusive of Ore
Reserves) at 60.5% Fe. The updated JORC Mineral Resource Estimate
("MRE") with a 58% cut-off grade delivered an Indicated Resource of
1.7Mt at 61.0% Fe and an Inferred Resource of 7.4Mt at 60.1% Fe.
This Global Resource of 9.1Mt has a 60.3% Fe grade.
In May 2023, the Company finished its resource definition
drilling programme at the Hancock Project. This drilling programme
focused on the Company's high-grade Sirius Deposit, which contains
6.7mt of the total 7.4mt Inferred Resource. Post the period, assay
results were returned for the drilling campaign which highlighted
significant intersections of high-grade iron ore (see post period
notes). The Company continues to work with its independent and
geological consultants to update the various resource, reserves and
mining models.
In May 2023, Alien announced the successful fast-tracked
purchase of Mallina Exploration Pty Ltd to expedite the acquisition
of the adjoining E 47/5001 tenement. The tenement adjoins the
proposed mining lease at Hancock Iron Ore Project and offers direct
strategic access to the Great Northern Highway.
Post Period Events
Whilst significant developments were made at Hancock during the
Period, significant developments were also made post period. On the
20(th) of July, our subsidiary Iron Ore Company of Australia Pty
Ltd ("IOCA"), unveiled the assay results from its drilling
programme at Hancock Iron Ore Project. The results indicate
consistent grades exceeding 60% Fe, aligning with the Company's
current resource model.
In August 2023, preliminary investigations detailing the
potential for DSO at the Mallina Tenement, next to the Hancock
Project were identified. High-grade rock chip samples with more
than 60% Fe were identified through historical review of prior
exploration campaigns further highlighting the potential for
exploration upside on the tenement. The geological make up of the
tenement maps promisingly for iron ore discoveries with geological
settings similar to IOCA's Weeli Wolli iron ore formations and
Boolgeeda iron ore formation with the ridge on the Hancock tenement
(Ridge H), extending into the Mallina Tenement for several kms, a
ridge that has previously delivered direct ship iron ore rock chip
samples of over 60% Fe.
In August 2023, the company identified the requirement for an
update to the 2021 Scoping Study. The updated study will optimise
and enhance the mine plan, infrastructure designs, and finalise
capital and operational costs as a result of the updated mineral
resources and ore reserves. Mining Plus, a global engineering and
consulting firm, has been appointed as the lead consultant for the
study.
In parallel with the study, the Company engaged its primary and
preferred contractors to support these efforts through Early
Contractor Involvement initiatives. REGROUP Australia were engaged
as the preferred contractor to undertake the construction works,
mining operations and haulage services for the Hancock Iron Ore
Project. REGROUP is well-regarded for its expertise in civil
construction, mining, and haulage, having handled projects
surpassing A$100 million multiple times. With a significant fleet
and prestigious clients like Newcrest Mining, Roy Hill, and Element
25, their selection will also aid in updating the Company's
financial model. REGROUP's scope includes construction of an
intersection at the Great Northern Highway and an access track to
the mine site. They will also manage mining services and haulage
from the mine site to the Utah Point at Port Hedland. This
selection significantly reduces risks related to the Hancock
Project.
Rapid Crushing & Screening Contractors Pty Ltd were engaged
as the crushing and screening contractor for its Hancock Iron Ore
Project. Rapid Crushing & Screening are a recognised leader in
iron ore processing and hav previously partnered with industry
giants such as Fortescue Metals Group.
Nickel, Copper, Platinum Group Elements ("PGE"), Silver &
Base Metals
Elizabeth Hill, along with the Munni Munni PGM prospect lies
within the Company's Pinderi Hills province, a unified significant
tenement holding of 180 square kilometres ("km2") south of
Karratha, a major Western Australian mining and industrial hub.
The Elizabeth Hill Silver Mine and deposit is a valuable part of
the Pinderi Hills project area. The Company is the first single
entity to own and consolidate the Munni Munni, Ni-PGM project,
Elizabeth Hill project and the surrounding area (Pinderi Hills)
into a single unified coherent tenement holding.
The Pinderi Hills area incorporates:
1. Elizabeth Hill: The Elizabeth Hill project, historically
Australia's highest-grade silver deposit, is situated approximately
45km south of Karratha in the 61,000 square kilometres Achaean
Pilbara Block of the Pilbara Craton. The project is well located,
lying 40km from the deep-water port at Dampier and 8km from rail
infrastructure. The known, major silver deposit at the Elizabeth
Hill Mine Site, which has a non-compliant JORC 2004 Resource
estimate of 4.05 million ounces ("Moz") Ag at greater than 200 g/t
Ag, and produced 1.2 Moz silver at 2,195 grams per tonne ("g/t")
and Ag (70.24 Oz/t Ag). The Elizabeth Hill Silver Project was mined
between 1998 and 2000 via underground mining, primarily between the
62m and 102m levels. Ag production totalled approximately 16,800
tonnes of ore grading 2,195 g/t Ag (70.24 oz/t Ag) generating
1,170,000 ounces Ag, including some very large specimens of native
Ag.
2. Munni Munni: The Munni Munni PGE deposit historic JORC 2004
Resource estimate implied 24Mt @ 2.9g/t PGE and gold for 2.2Moz PGE
and gold consisting of 1.14Moz Pd, 0.83Moz Pt, 152Koz Au and 76Koz
rhodium.
3. Several other deposits that are prospective for Platinum
("Pt"), Palladium ("Pd"), Rhodium ("Rh"), Ag, Ni, Cu, Pb, Zn, all
of which are metals that are required to support the push into
renewable energy across the world.
At Elizabeth Hill, the Company was pleased to report the final
assay results from four reverse circulation holes at Elizabeth Hill
which demonstrated the geological model area of known
mineralisation contains a potential extension of high-grade bulk
tonne silver. These positive results included broad zones of Ni and
Cu that align with an electromagnetic anomaly and an extension of
Judy's Reef. The findings suggest the presence of a new reef
similar to Munni Munni's significant Ferguson Reef.
Outlook
Looking ahead, we remain focused on delivering long-term value
for our shareholders by continuing to advance our exploration and
development projects. We will focus on developing further our
Hancock Iron Ore Project, especially in the wake of the milestones
achieved during the last few months. We believe that the combined
potential of these tenements in the mining licence could
substantially increase the scale and longevity of our operations in
the region. As seen via the announcements that we have put out on
Hancock over the past few months, we are nearing production status
at the site which will be transformative for the company once we
finalise this. We will continue to prioritise safety,
sustainability, and good governance in all our operations.
For further information please visit the Company's website at
www.alienmetals.uk , or contact:
Alien Metals Limited Troy Whittaker
T: +44 (0) 20 7138 3204 (c/o BlytheRay)
Beaumont Cornish Limited (Nomad)
James Biddle / Roland Cornish
Tel: +44 (0) 207 628 3396
WH Ireland Ltd (Joint Broker)
Harry Ansell / Katy Mitchell
Tel +44 (0) 207 220 1666
BlytheRay (Financial PR)
Tim Blythe / Megan Ray / Said Izagaren
Tel: +44 (0) 20 7138 3204
Notes to Editors:
Alien Metals Ltd is a mineral exploration and development
Company listed on the AIM market of the London Stock Exchange (LSE:
UFO). The Company's focus is on delivering a near term direct
shipping iron ore operation at the Hancock Project in the Pilbara
region of Western Australia.
In 2019, the Company acquired 51% of the Brockman and Hancock
Ranges high-grade (Direct Shipping Ore) iron ore projects and in
December 2022 moved to 90% legal and beneficial ownership. In May
2023, the Company also acquired 100% of Mallina Exploration Pty Ltd
and with it, the Western Hancock Tenement. The new tenement adjoins
the Company's existing Hancock tenement, giving the entire Hancock
project direct access to the Great Northern Highway.
The Company also acquired 100% of the Vivash Gorge Iron Ore
project in the west Pilbara in July 2022.
The Company owns 100% of the Elizabeth Hill Silver Project,
which consists of the Elizabeth Hill Historic Mining Lease and the
115km(2) exploration tenement around the mine.
In March 2022 the Company acquired 100% of the former joint
venture interest in the broader Pinderi Hills tenement group in the
West Pilbara, Western Australia. This includes the Munni Munni
Platinum Group Metals Project, one of Australia's major
underexplored PGE and base metals projects. Munni Munni holds a
historic deposit containing 2.2 Moz 4E PGM: Palladium, Platinum,
Gold, Rhodium. The Pinderi hills tenement group also has
significant Nickel and Copper prospectivity.
The Company also holds silver, copper and base metal projects in
Mexico, however is currently looking at the best way to divest
these for the benefit of shareholders.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(Tabular amounts rounded to nearest thousand of US dollars
unless otherwise stated)
6 months 6 months
to 30 June to 30 June
2023 Unaudited 2022 Unaudited
$ $
---------------------------------------------- ---------------------- -----------------
Continuing operations
Other income 9,000 -
Administration expenses (1,655,000) (1,368,000)
Operating Loss (1,646,000) (1,368,000)
----------------------------------------------- ---------------------- -----------------
Other net gains/(losses) - -
Profit/(Loss) Before Interest and Income
Tax (1,646,000) (1,368,000)
----------------------------------------------- ---------------------- -----------------
Net finance Income 4,000 -
Corporation tax expense - -
---------------------------------------------- ---------------------- -----------------
Profit/(Loss) for the period (1,642,000) (1,368,000)
----------------------------------------------- ---------------------- -----------------
Profit/(Loss) attributable to:
* owners of the Company (1,642,000) (1,368,000)
Profit/(Loss) for the period (1,642,000) (1,368,000)
----------------------------------------------- ---------------------- -----------------
Other comprehensive income
Items that may be subsequently reclassified
to profit or loss
Currency translation differences (475,000) (1,819,000)
----------------------------------------------- ---------------------- -----------------
Total comprehensive income (2,117,000) ( 3,187,000)
----------------------------------------------- ---------------------- -----------------
Attributable to:
* owners of the Company (2,117,000) ( 3,187,000)
Total comprehensive income (2,117,000) ( 3,187,000)
----------------------------------------------- ---------------------- -----------------
loss per share (cents) from continuing
operations attributable to owners of
the Parent - Basic and diluted (0.031) (0.031)
----------------------------------------------- ---------------------- -----------------
CONDENSED CONSOLIDATED BALANCE SHEET
(Tabular amounts rounded to nearest thousand of US dollars
unless otherwise stated)
Notes As at As at As at
30 June 30 December 30 June
2023 2022 Audited 2022
Unaudited $ Unaudited
$ $
------------------------------- ------- -------------- --------------- --------------
Non-Current Assets
Intangible assets 4 16,647,000 15,639,000 12,610,000
Assets under construction 456,000 455,000 426,000
Right of use asset - 17,000 67,000
17,103,000 16,111,000 13,103,000
------------------------------- ------- -------------- --------------- --------------
Current Assets
Trade and other receivables 382,000 318,000 721,000
Cash and cash equivalents 145,000 2,177,000 3,063,000
527,000 2,495,000 3,784,000
------------------------------- ------- -------------- --------------- --------------
Total Assets 17,630,000 18,606,000 16,887,000
------------------------------- ------- -------------- --------------- --------------
Non-Current Liabilities
Deferred tax liabilities 44,000 - -
Current Liabilities
Trade and other payables 1,004,000 446,000 830,000
Short-term lease liability - 17,000 67,000
------------------------------- ------- -------------- --------------- --------------
Total current Liabilities 1,004,000 463,000 897,000
------------------------------- ------- -------------- --------------- --------------
Total Liabilities 1,048,000 463,000 897,000
------------------------------- ------- -------------- --------------- --------------
Net Assets 16,582,000 18,143,000 15,990,000
------------------------------- ------- -------------- --------------- --------------
Equity Attributable to
owners of the Company
Share Capital 79,620,000 79,586,000 77,122,000
Warrant reserve 739,000 739,000 274,000
Share based payment reserve 1,253,000 771,000 1,367,000
Foreign exchange translation
reserve 220,000 694,000 406,000
Retained losses (65,250,000) (63,647,000) (63,179,000)
------------------------------- ------- -------------- --------------- --------------
Total equity attributable
to owners of the Company 16,582,000 18,143,000 15,990,000
------------------------------- ------- -------------- --------------- --------------
Total Equity 16,582,000 18,143,000 15,990,000
------------------------------- ------- -------------- --------------- --------------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
(Tabular amounts rounded to nearest thousand of US dollars
unless otherwise stated)
Foreign
Share exchange
Share Warrant based payment translation Retained
capital reserve reserve reserve losses Total equity
$ $ $ $ $ $
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
As at 1 January
2022 70,422,000 865,000 1,179,000 2,225,000 (62,420,000) 12,271,000
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
Comprehensive
income
(Loss) for the
period - - - - (1,368,000) (1,368,000)
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
Other comprehensive
income
Currency translation
differences - - - (1,819,000) - (1,819,000)
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
Total comprehensive
income - - - (1,819,000) (1,368,000) (3,187,000)
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
Issue of ordinary -
shares - - - - -
Project acquisitions
(non-cash) 5,999,000 - - - - 5,999,000
Options granted - - 206,000 - - 206,000
Exercise options 10,000 - (9,000) - 9,000 10,000
Exercise of warrants 691,000 (484,000) - - 484,000 691,000
Options expired - (107,000) (9,000) - 116,000 -
Total transactions
with owners 6,700,000 (591,000) 188,000 - 609,000 6,906,000
As at 30 June
2022 77,122,000 274,000 1,367,000 406,000 (63,179,000) 15,990,000
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
Foreign
Share exchange
Share Warrant based payment translation Retained
capital reserve reserve reserve losses Total equity
$ $ $ $ $ $
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
As at 1 January
2023 79,586,000 739,000 771,000 695,000 (63,647,000) 18,144,000
----------------------
Comprehensive
income
(Loss) for the
period - - - - (1,642,000) (1,642,000)
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
Other comprehensive
income
Currency translation
differences - - - (475,000) - (475,000)
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
Total comprehensive
income - - - (475,000) (1,642,000) (2,117,000)
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
Issue of ordinary
shares 34,000 - - - - 34,000
Options granted - - 521,000 - - 521,000
Exercise of options - - (39,000) - 39,000 -
Total transactions
with owners 34,000 - 482,000 - 39,000 555,000
As at 30 June
2023 79,620,000 739,000 1,253,000 220,000 (65,250,000) 16,582,000
---------------------- ------------ ----------- ----------------- -------------- -------------- --------------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
(Tabular amounts rounded to nearest thousand of US dollars
unless otherwise stated)
30 June 30 June
2023 Unaudited 2022 Unaudited
Note $ $
----------------------------------------------- --------- ----------------- -----------------
Cash flows from operating activities
Loss before taxation (1,642,000) (1,368,000)
Adjustments for:
Depreciation 2,000 -
Share based payments 521,000 206,000
Exchange difference (348,000) 6,000
(Increase) in trade and other receivables (20,000) (458,000)
Increase in trade and other payables 559,000 174,000
Net cash used in operations (928,000) (1,440,000)
---------------------------------------------------------- ----------------- -----------------
Cash flows from investing activities
Expenditure on assets under construction - (135,000)
Purchase of intangible assets (1,228,000) (1,372,000)
Purchase of fixed assets (3,000) -
Net cash used in investing activities (1,231,000) (1,507,000)
---------------------------------------------------------- ----------------- -----------------
Cash flows from financing activities
Proceeds from exercised options and warrants - 700,000
Cost of share issue 34,000 -
----------------------------------------------- --------- ----------------- -----------------
Net cash from financing activities 34,000 700,000
---------------------------------------------------------- ----------------- -----------------
Decrease in cash and cash equivalents (2,125,000) (2,247,000)
Cash and cash equivalents at beginning
of period 2,177,000 6,431,000
Exchange differences on cash 93,000 (1,121,000)
---------------------------------------------------------- ----------------- -----------------
Cash and cash equivalents at end of period 145,000 3,063,000
---------------------------------------------------------- ----------------- -----------------
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1. General Information
The principal activity of Alien Metals Ltd ('the Company') and
its subsidiaries (together 'the Group') is the exploration and
development of mineral resource assets. The Company's shares are
listed on the AIM Market of the London Stock Exchange. The Company
is incorporated and domiciled in the British Virgin Islands.
The address of the Company's registered office is Craigmuir
Chambers PO BOX 71, Road Town, Tortola, British Virgin Islands,
Virgin Islands.
2. Basis of Preparation
The consolidated interim financial statements have been prepared
in accordance with the requirements of the AIM Rules for Companies.
As permitted, the Company has chosen not to adopt IAS 34 "Interim
Financial Statements" in preparing this interim financial
information. The consolidated interim financial statements should
be read in conjunction with the annual financial statements for the
year ended 31 December 2022, which have been prepared in accordance
with UK-adopted International Accounting Standards ("UK-adopted
IAS").
The consolidated interim financial statements set out above does
not constitute statutory accounts. They have been prepared on a
going concern basis in accordance with the recognition and
measurement criteria of UK-adopted IAS. Statutory financial
statements for the year ended 31 December 2022 were approved by the
Board of Directors on 30 June 2023.
The consolidated interim financial statements are presented in
United States dollars as the Company believes it to be the most
appropriate and meaningful currency for investors. The functional
currencies of the Company and its subsidiary in Mexico, Compañía
Minera Estrella de Plata SA de CV ("CMEP"), are pounds sterling and
Mexican pesos respectively. Functional currency of all four
Australia based subsidiaries A.C.N. 643 478 371 Pty Ltd, Iron Ore
Company of Australia Pty Ltd, Alien Metals Australia Pty Ltd and
Mallina Exploration Pty Ltd is Australian Dollar.
Going concern
Given the Group's current cash position and its demonstrated
ability to raise capital, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. Thus, they
continue to adopt the going concern basis of accounting preparing
the consolidated interim financial statements for the period ended
30 June 2023. Whilst the Directors are confident that they will be
able to secure the necessary funding as and when required, the
current conditions do indicate the existence of a material
uncertainty that may cast doubt regarding the applicability of the
going concern assumption.
The factors that were extant at 31 December 2022 are still
relevant to this report and as such reference should be made to the
going concern note and disclosures in the 2022 Annual Report.
Risks and uncertainties
The Board continuously assesses and monitors the key risks of
the business. The key risks that could affect the Group's
medium-term performance and the factors that mitigate those risks
have not substantially changed from those set out in the Group's
2022 Annual Report and Financial Statements, a copy of which is
available on the Group's website: https://www.alienmetals.uk . The
key financial risks are liquidity risk, capital management risk,
price risk, foreign exchange risk, credit risk and investment
risk.
Critical accounting estimates
The preparation of condensed interim financial statements
requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, income and
expenses, and disclosure of contingent assets and liabilities at
the end of the reporting period. Significant items subject to such
estimates are set out in note 4 of the Group's 2022 Annual Report
and Financial Statements. Actual amounts may differ from these
estimates. The nature and amounts of such estimates have not
changed significantly during the interim period.
3. Accounting Policies
The same accounting policies, presentation and methods of
computation have been followed in these condensed interim financial
statements as were applied in the preparation of the Group's annual
financial statements for the year ended 31 December 2022 except for
the impact of the adoption of the Standards and interpretations
described below and new accounting policies adopted as a result of
changes in the Group.
3.1 Changes in accounting policy and disclosures
(a) New and amended standards mandatory for the first time for
the financial periods beginning on or after 1 January 2023
The International Accounting Standards Board (IASB) issued
various amendments and revisions to International Financial
Reporting Standards and IFRIC interpretations. The amendments and
revisions were applicable for the period ended 30 June 2023 but did
not result in any material changes to the Financial Statements of
the Group.
b) New standards, amendments and interpretations in issue but
not yet effective or not yet endorsed and not early adopted
Standards, amendments and interpretations that are not yet
effective and have not been early adopted are as follows:
Standard Impact on initial application Effective date
--------------------------- ----------------------------------- ----------------
IAS 1 (Amendments) Classification of Liabilities as *1 January
Current or Non-Current 2023
----------------------------------- ----------------
IAS 1 and IFRS Practice Disclosure of Accounting Policies 1 January
Statement 2 (Amendments) 2023
----------------------------------- ----------------
IAS 8 (Amendments) Accounting estimates 1 January
2023
----------------------------------- ----------------
IAS 12 Income taxes 1 January
2023
IFRS 17 Insurance contracts 1 January
2023
----------------------------------- ----------------
* Subject to endorsement
The Group is evaluating the impact of the new and amended
standards above which are not expected to have a material impact on
future Group Financial Statements.
4. Intangible assets - exploration and evaluation costs
The movement in capitalised exploration and evaluation costs
during the period was as follows:
Exploration & Evaluation at Cost and Net Book Value $
------------------------------------------------------ ------------
Balance as at 1 January 2023 15,639,000
Additions 1,202,000
Asset acquisitions 26,000
Foreign exchange (220,000)
As at 30 June 2023 16,647,000
------------------------------------------------------ ------------
During the period the Group completed the acquisition of Mallina
Exploration Pty Ltd which included exploration assets of
$26,000.
5. Loss per share
The calculation of loss per share is based on a retained loss of
$1,642,000 for the six months ended 30 June 2023 (six months ended
30 June 2022: $1,368,000) and the weighted average number of shares
in issue in the period ended 30 June 2023 of 5,324,836,801 (six
months ended 30 June 2022: 4,442,460,050).
No diluted earnings per share is presented for the six months
ended 30 June 2023 or six months ended 30 June 2022 as the effect
on the exercise of share options would be to decrease the loss per
share.
6. Post balance sheet events
On 3 July 2023 the Company entered into a short-term funding
facility of up to US$1 million. The convertible securities of up to
US$1,000,000 are to be drawn in equal tranches: Tranche 1
US$500,000 and Tranche 2 US$500,000. Tranche 2 was subsequently
cancelled following the capital raising in August 2023.
On 10 August 2023, the Company issued 1,000,000,000 new ordinary
shares at a price of 0.2 pence per share to raise GBP2,000,000
GBP.
7. Approval of interim financial statements
The condensed interim financial statements were approved by the
Board of Directors on 29 September 2023.
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END
IR PPUPWBUPWPPR
(END) Dow Jones Newswires
September 29, 2023 02:00 ET (06:00 GMT)
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